Last year, the senior executives at Bombardier got an early raise as thousands of workers were laid off and pay for senior executives was raised by 50%. The company then asked for government aid and introduced their first CSeries passenger jet.
The compensation was made for the top five senior executives and the board chairman of the company Pierre Beaudoin. In order to cut its losses and focus more on their next business jet, the raise was given before the annual meeting, which is usually conducted on 11th May.
The compensation in the salaries and other benefits were as follows:
Board Chairman Pierre Beaudoin: US$32.6 million from US$21.9 million, all in the time span of year.
CEO Alain Bellemare: US$9.5 million from US$6.4 million. This raise was accompanied with US$1 million salary, option-based awards and a share in the company worth US$5.2 million.
The raise in the pay doubled Bellemare’s annual bonus to US$2.36 million and Beaudoin’s pay rose to US$5.25 million a year earlier.
According to Bombardier’s regulatory filing, the reason behind the raise in the compensation is due to employees going above and beyond their duties. These executives secured the CSeries orders, achieved cash flow and profit targets, and carried out the business jet Global 7000’s first flight successfully.
CEO Bellemare was credited for exceeding profit margins in every business segment, making significant progress in company’s plan to achieve and revive its fortunes and achieving higher earnings under company’s guidance.
According to Simon Letendre, the company’s spokesperson, the compensation is still not guaranteed. A large portion of it depends on a number of factors. 85% of the CEO’s and president’s compensation is at risk. Amongst this, 28% depends on the company’s stock appreciation in the market.
Bombardier plants to lay off 14,500 workers by the end of 2018. Last year, Bombardier shares increased to $2.16 (61%). According to Toronto Stock Exchange (TSX), the share gained one cent on last Wednesday. Despite low revenues, the company has been able to cuts its losses from US$5.34 billion to US$981 million.
On Wednesday, it was revealed that former CEO of International Air Transport Association and Cathay Pacific Airways, Antony Tyler and CEO of Camso, Pierre Marcouiller will replace CEO of ex-Bell and Nortel, Jean Monty and Quebec’s former premier Daniel Johnson on the board of directors.